Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

FX levels to watch – EUR/USD, GBP/USD and AUD/USD

The dollar remains under pressure, with EUR/USD, GBP/USD, and AUD/USD all gaining ground over the past week. With consolidation currently in play, further upside looks likely. 

Video poster image

EUR/USD gradually regaining ground

EUR/USD is on the upward journey within a range that has been in place throughout much of 2018. The recent retracement has been relatively moderate, with the price hitting the 50% level thus far.

Given the shallow nature of this current rebound, there is a strong chance we will see a three-legged retracement, with the price moving into the 61.8% or 76.4% level. As such, while we are expecting to see a move back towards the upper echelons of the range, we could quite easily see a short-term period of weakness beforehand.

EUR/USD chart

GBP/USD consolidates after key break

GBP/USD managed to break through the crucial $1.4244 swing high last week, in turn bringing about a two-month high for the pair.

The next major resistance level to look out for comes at the late-January peak of $1.4346. Until then, we are expecting to see further upside, unless the price manages to break below the most recent swing low (currently $1.4220).

GBP/USD chart

AUD/USD turning higher following pullback

AUD/USD has been recovering ground over the past week, with a falling wedge moving into a crucial 76.4% retracement at $0.7651.

Much of the weakness seen on Friday and in early trade today has been negative, with the price falling close to the $0.7738 swing low. A break below there would point towards a more bearish phase coming into play. However, with the price now starting to recover, it is clear that we could see this rebound continue apace for the time being. 

AUD/USD chart

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Find out more about